Generac Holdings Inc. GNRC recently expanded its robust portfolio with a new range of high-capacity generators specifically designed for the data center market. 

As the aging power grid faces mounting challenges from more extreme weather and increasing energy consumption, the company has been steadily shifting its focus toward serving commercial and industrial markets. With decades of experience powering hospitals, telecom operators and large-scale facilities, Generac is leveraging its deep expertise to meet the growing requirements of today’s data centers, from hyperscalers and colocation providers to enterprise and edge environments.

The lineup includes five powerful generators ranging from 2.25 MW to 3.25 MW, all engineered with modern components and cutting-edge features to ensure seamless performance in mission-critical applications. Its broad and diversified supply chain enhances its ability to handle increasing demand by reducing risks, supporting rapid scaling, providing access to innovations and managing costs effectively. This approach also allows the company to offer competitive lead times of 50–60 weeks for fully packaged generators, helping businesses stay agile and succeed in a constantly evolving market.

In addition, GNRC coordinates enclosures, tanks, aftertreatment and switchboards directly with packaging manufacturers experienced in the data center market, ensuring a seamless deployment process. Generac’s strategic acquisitions, market insights and industry collaborations have translated into a comprehensive offering that balances innovation, scalability, cost-efficiency and resilience.

Top-tier Features of GNRC’s New Data Center Generators

The Baudouin M55 engines boast a high-pressure common rail fuel system, offering a swift transient response, enhanced ambient temperature derate capability and low NOx emissions. These traits make them ideal for maintaining power under dynamic loads and in high-stress environments.

Generac Holdings Inc. Price and Consensus

Generac Holdings Inc. price-consensus-chart | Generac Holdings Inc. Quote

The generators feature the Deep Sea G8601 Controller, which is a highly configurable controller designed for mission-critical use cases. It provides extensive monitoring, protection and control features, ensuring that each generator can adapt to unique operational requirements. Purpose-built for the data center industry, DataMAX alternators feature low reactance and superior reliability. These alternators ensure smooth power delivery with minimal disruption, which is essential for sensitive data center loads.

These generators also meet strict emissions requirements, such as those mandated in states like Virginia, and are compatible with compliant Tier 4 aftertreatment systems, helping data center operators remain compliant without compromising performance. These comprise a redundant starting system that includes an extra set of engine starters, batteries and battery chargers. These backup components are completely isolated from the main system to eliminate any single point of failure and ensure reliable operation. 

Furthermore, their advanced cooling packages are engineered for maximum performance in conditions up to 50°C, maintaining efficiency in harsh climates. Generac’s proprietary Modular Power Systems integrate multiple generators using Deep Sea onboard paralleling controls, creating scalable, flexible and redundant power architectures. The new lineup offers left and/or right-side circuit breakers, configurable to the generator’s full rated amperage at 480V, giving customers flexibility during installation and integration.

The proliferation of artificial intelligence applications has spurred the construction of energy-intensive data centers. This is likely to augment demand for power consumption/backup power shortly, which is expected to put pressure on the aging power grids. Generac's backup power portfolio is well-suited to provide a resilient power supply as electricity demand continues to surge. Next-generation energy technology solutions across residential and C&I product categories are likely to boost resiliency value through improved cost-effectiveness and higher comfort.

Generac’s Zacks Rank & Stock Price Performance

GNRC currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 25.5% in the past year compared with the industry's fall of 21.3%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and CommScope Holding COMM. IDCC, COMM & UI presently sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. It has a long-term growth expectation of 19.37%.

 

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